Tennessee-Based Commercial Bank’s Holding Company Launches IPO

The bank holding company for Tennessee-based Commercial Bank launched its initial public offering.

Commercial Bancgroup and some of its shareholders plan to offer a total of 3,738,317 shares of common stock, with the selling shareholders expected to grant the underwriters a 30-day option to purchase an additional 560,747 shares at the IPO price, according to a Monday (Sept. 22) press release.

The IPO price is expected to be between $25.75 and $27.75 per share, and the company expects to list its common stock on Nasdaq under the ticker symbol CBK, according to the release.

“Commercial intends to use its net proceeds from the offering to repay certain company indebtedness and redeem its outstanding subordinated debentures and related trust preferred securities, and to use the remaining net proceeds, if any, for general corporate purposes,” the company said in the release.

Commercial Bank is a Tennessee state-chartered commercial bank and offers consumer and commercial banking products and services to businesses and consumers in some parts of Kentucky, North Carolina and Tennessee, per the release.

IPOs by banks in the United States have been rare since the 2008 financial crisis because of regulations, compliance costs and market conditions, Reuters reported Monday. Many lenders looking to grow have turned instead to private capital raises or mergers.

Companies in the banking and insurance sectors are attractive to investors at this time because the IPO market is exiting a slump and because the core operations of these companies are not directly affected by tariffs or the ups and downs of import or export prices, the report said.

It was reported Sept. 14 that the U.S. IPO market saw a resurgence when seven large-cap companies went public in a single week, raised more than $4 billion and saw a generally positive reception. The IPOs included buy now, pay later firm Klarna, cryptocurrency exchange Gemini and blockchain platform Figure Technology Solutions.

These and other deals, plus a “robust” pipeline, bolstered the hopes of bankers who have been waiting for an IPO rebound following a drought that was extended by a tariff-related market upheaval, the report said.